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The $50,000 mark has been broken:

Bitcoin is trading at its highest level in 30 months

Photo: Dado Ruvic / REUTERS

The digital currency Bitcoin continued its rise on Wednesday after a short interruption. On Wednesday afternoon, the price of the largest crypto asset by market value climbed to $51,835. Since the beginning of the year, Bitcoin has gained around 20 percent. Other cryptocurrencies also rose.

Bitcoin above $50,000 before 'halving'

On Monday, the Bitcoin price climbed above the $50,000 mark for the first time since the end of 2021. The oldest and best-known digital asset has been benefiting from increasing investor interest for days. According to experts, the introduction of special Bitcoin funds, which were already approved by the US Securities and Exchange Commission in January, is becoming increasingly noticeable. These ETFs allow investors to invest in Bitcoin without having to directly purchase the digital currency itself.

According to calculations by the Bloomberg news agency, the new funds received around $2.8 billion net in the last 30 days. The gross amount is significantly higher, but this also involves reallocations within the crypto industry.

Another upcoming event also makes investors look positively on Bitcoin: the next so-called “Halving” is scheduled for April. This reduces the reward that Bitcoin miners receive for verifying crypto transactions. Ultimately, the process leads to a slower growing supply of Bitcoin, which has so far mostly led to rising prices.

Investor advocates warn

James Butterfill

, head of research at Coinshares, expects further increases in the coming months. Investors were looking for alternative stores of value, Butterfill said. The market value of all Bitcoins currently corresponds to around eight percent of the value of all gold holdings worldwide.

Meanwhile, consumer advocates continue to warn about the risks. “Today, no one can reliably predict whether Bitcoins, variants thereof or other cryptocurrencies will become established as an alternative to conventional monetary systems in the medium term,” says the consumer advice center. Bitcoins are not recommended as an investment due to the risks involved. The main risks consumer advocates mention are the very strong price fluctuations, including a possible total loss, and the lack of security systems.

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